China's Multinational Enterprises And Political Risk Management Study

Through the study on the theories of political risk, this paper tries to classify the definitions of political risk in different times based on relevant international economic and political environment. With the theory of Xiong Guangkai about the non-traditional security threats, the author analyzes the new trend and form of political risk and therefore improves the definition and classification of political risk. Next part the author evaluates the existing analysis frames of political risk. Based upon the study on the new trend of political risk, the author analyzes the political risk suffered by the Chinese enterprises in the process of multinational operation and focuses on the type of pan-specific political risks by three cases of China's enterprises'cross-border mergers and acquisitions. Finally, from the management perspective, the author puts forward the political risk management strategies and measures in the macro, medium and micro levels. In the macro-level, the government should integrate the building up of the national image and the improvement of the diplomatic emergency mechanism into the enterprises' political risk management system to reflect the nation's power backing the business. In the medium-level, the author tries to emphasize the research organizations and industry association should bring function into full play and provide the information for enterprises in all-round ways. In the micro-level, the corporation should hold the belief of a good crisis planning, handling in progress and remediation afterwards and put forward some measures with pertinence to manage political risk to help Chinese enterprises involved in multinational operation avoid or reduce the loss resulted from political risk.